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The Honolulu Advertiser
Posted on: Thursday, December 18, 2008

Britain may help keep Jaguar alive

Associated Press

LONDON — The British government is in talks with Jaguar Land Rover about a possible government bailout, a senior official said yesterday.

Business Secretary Peter Mandelson said the government was in talks with Jaguar Land Rover's owners "because they argue that they are under particular strain."

But he added that the government had yet to commit to providing them with any assistance. Government intervention would depend in large part on the severity of the downturn in the automotive market, he said.

Mandelson did not specify how the government might intervene or how much money it would be willing to put up to save the luxury car maker, but Britain's Daily Mail newspaper said the company was seeking access to 1 billion pounds ($1.55 billion) over two years.

A call seeking comment from Jaguar Land Rover was not immediately returned yesterday.

Mandelson warned that the government did not have "an open checkbook" and said it was the responsibility of Indian conglomerate Tata Motors Ltd. — which acquired the Jaguar and Land Rover brands in June — to provide the cash to keep its subsidiaries alive.

In Britain, Jaguar Land Rover is one of several car industry groups reported to be asking for taxpayer money to help them survive the crunch. Others have already collapsed under the strain. Last week British car parts maker Wagon PLC filed for a form of bankruptcy after failing to persuade key shareholders to commit to an emergency refinancing package.